Advisers Cite Material Returns from Social Media Outreach

Some 43% of financial advice professionals attribute a
measurable return to time invested in business-related social media use, according to a new
report from American Century Investments. The report matches other recent research suggesting social media has only increased
in importance for producing advisers as a means of communicating with current
and potential clients.

Research Now, a global online research panel provider, collected
the underlying data from hundreds of practicing financial advisers and broker/dealer professionals, via an
online survey fielded in March 2015. The results show LinkedIn has helped 74%
of financial professionals “in developing expertise or building their business.”

While adoption of premium/paid social media by advisers has
been slow, professionals reportedly see LinkedIn Groups as the most important free social media offering, whether as a way to connect with peers, advisory colleagues or other service providers.

As in other fields slower to pick up social media as a way
of doing business, financial advisers consistently cite “professionalism” as a paramount
virtue when communicating with clients and prospects via a social media
network. Pretty much all advisers (95%) surveyed said they “have at least some
experience” using social media for business purposes. This includes the over
60% reporting moderate to extensive experience.

NEXT: What good does
social media do, exactly?

One question in the survey asked advisers directly how “being
connected for business purposes” on social media impacts their relationships with
colleagues and clients. A majority of advisers (52%) suggested they would in
fact be more likely to work with a social media contact, while 45% suggested being connected with someone on social media would have no effect. Just 2% indicated being acquainted with someone on social
media makes them a less suitable business partner or client.

The actual business uses for social media seem to vary pretty widely from
firm to firm, but patterns do emerge. Reading expert commentary and keeping tabs
on trendsetters was cited as a top use of social media by 28% this year, up significantly from
earlier editions of the study. Also prevalent were sharing news content with
colleagues and clients, cited by 17%, and researching potential clients or colleagues,
cited by 16%.

Other common uses included brand promotion, posting market
or current event commentary, competitive intelligence and gathering customer
feedback, among others.

When it comes to why advisers follow particular asset
managers or other colleagues on social media, it is most often to “get content
I can’t find anywhere else,” cited by 54% of advisers this year. Thirty-seven
percent say they maintain social media contact with colleagues because they are
“engaging and personable,” while 33% use social media to maintain easy access
to industry peers.

The full research report from American Century Investments
is available here.